Changes to tax laws on the Isle of Man will allow companies to provide more competitive Qualifying Recognised Overseas Pension Scheme(QROPS) rates.
Until now, non-Manx residents were subject to a 20% tax on income including from pensions, placing the island at a disadvantage to more favourable tax environments such as Guernsey.
However, Tynwald, the Isle of Man Parliament, will formally ratify a new tax rule in its next three day session starting October 19, which will remove the 20% tax rate for non-Manx pensioners.
"The changes to the Manx legislation will undoubtedly be welcomed by pension practitioners, advisers and clients generally as the Isle of Man has been at a clear disadvantage compared to jurisdictions such as Guernsey," says Rex Cowley, head of marketing at Close Asset Management.
"However, a certain amount of talent and business momentum has already left the Isle of Man and the island will need to work hard to regain a competitive position.
"That said, from an adviser and client's perspective, having more choice available in the market place can only be seen as a good thing."
Cowley says Close currently has no plans to offer QROPS via the Isle of Man.
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